"It's been an amazing 10 years and we want to thank all of our loyal customers who have become friends," the post read.

In a released statement, Glenn Hancock of Pyramid Brewers said: "The Pyramid Sacramento Alehouse business has declined due to economic, social and competitive factors affecting downtown businesses in the area."

Hancock said employees would receive severance packages.

"It's too bad, because it was a nice place. I enjoyed their food and their beer," said Kevin Hoffman, a customer who found the doors locked when he arrived for lunch.

Hoffman and other customers said they were surprised because the restaurant was often crowded and busy.

Barry Smith, whose art gallery is next to Pyramid, predicted that location, one block from the State Capitol, would mean it does not stay vacant long.

"Overall, it might be good, just like the (Downtown Plaza) that recently changed hands. That's new energy and new ownership. So downtown for a few months or so, and then good things will happen," Smith said.

Pyramid opened in July 2003 in the former Ransohoff's department store building at the corner of and 11th streets.

At the time, officials said the city had paid $650,000 to renovate the building, but expected to recoup the cost within four to five years.

The building is owned by the California State Association of Counties, which said it also learned of the closing on Monday.